Question: With respect to bonds, when interest rates increase: Select one: O a. the price of the bond remains unchanged. O b. the price of the

With respect to bonds, when interest rates increase: Select one: O a. the price of the bond remains unchanged. O b. the price of the bond rises. c. the coupon rate also increases. O d. the coupon rate remains unchanged. If in financial lease analysis an asset's undepreciated capital cost were $200,000 and its salvage or scrap value were zero, how would the lessor treat this situation if it were assumed the asset would be alone in its class if it were owned? The tax rate is 40%. Select one: a. lessor would record this as an $80,000 lost tax shield at the end of the lease life. b. lessor would record the $200,000 as a cost of leasing at the end of the lease. c. lessor would ignore this, since this is the lessor's business. d. lessor would record the $200,000 as a cost the beginning of the lease
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
